The Labuan FSA Guidelines on Captive Insurance Business in Labuan IBFC were issued on 21 August 2023 and came into force on 1 January 2024, replacing the previous version dated 28 October 2010.

Core content:

1. Licence types: pure/single captive, group/association/multi-shareholder captive, rent-a-captive (master rent-a-captive, MRAC; rent-a-captive subsidiary, SRAC; extended rent-a-captive, XRAC) and protected cell company (PCC) cell captive.

2. Minimum paid-up capital: RM300,000 for pure captives and group/association captives; RM500,000 for rent-a-captives, PCCs and the like, and capital must not be eroded by accumulated losses.

3. Approval and fees: an application fee of USD350, with a fast-track approval option; annual licence fees of RM10,000 for a pure captive, RM13,000 for an MRAC and RM3,000 for an SRAC.

4. Ongoing requirements: maintain a management office in Labuan, engage a licensed underwriting manager or employ an in-house professional team, join the Labuan International Insurance Association (LIIA), submit audited financial statements within 6 months after the end of the financial year, and obtain prior approval for changes in shareholding of more than 10% and for the appointment of directors/key officers.

Guidelines:Legislation & Guidelines - Insurance on the Labuan FSA website